The deal is worth $16 million over the four years, sources said.
Ingram confirmed he is staying in New Orleans via Twitter on Saturday night.
Very excited to stay a saint!! God has blessed me beyond belief!! I don't deserve his grace!! Thank you!!
— Mark Ingram (@MarkIngram22) March 8, 2015
Ingram, a former first-round draft choice and Heisman Trophy winner out of Alabama, finally had a breakout season in 2014. The 25-year-old ran for a career-high 964 yards and nine touchdowns, despite missing three games with a broken hand early in the season. He also earned his first trip to the Pro Bowl as an alternate.
Ingram's career got off to a slow start due to a combination of minor injuries, inconsistent production and an overcrowded Saints backfield that relegated him mostly to short-yardage and baserunning packages. As a result, he had just 1,462 yards through three years, with one career 100-yard game.
However, the 5-foot-9, 215-pounder finally got an opportunity to be featured as a workhorse back last season after the Saints traded away Darren Sproles, and fellow backs Pierre Thomas and Khiry Robinson were injured.
Ingram responded with four 100-yard games in a six-week span, including a career-best 172 yards in a 44-23 victory over the Green Bay Packers on "Monday Night Football."
Ingram has a total of 2,426 yards and 20 rushing touchdowns in 50 career regular-season games, plus 53 career receptions for 288 yards.
The Saints plan to release the veteran Thomas, a move that will save them at least $1.735 million (or $2.15 million if they designate it as a post-June 1 release).
ESPN.com Saints reporter Mike Triplett contributed to this report.